HSA inflation adjustments issued for 2013

BY SALLY P. SCHREIBER

On Friday, the IRS issued the inflation-adjusted figures for the annual contribution limitation for health savings accounts (HSAs) and the minimum deductible amounts and maximum out-of-pocket expense amounts for high-deductible health plans for calendar year 2013 (Rev. Proc. 2012-26).

Under Sec. 223, individuals who participate in a health plan with a high deductible amount are permitted a deduction for contributions to HSAs set up to help pay the individuals’ medical expenses. The limit on the contribution deduction is subject to an inflation adjustment each year: For 2013, the annual limitation on deductible contributions is $3,250 for individuals with self-only coverage and $6,450 for family coverage.

To be eligible to contribute to an HSA, individuals must participate in a “high deductible health plan,” which is defined as a health plan with an annual deductible that is not less than a certain limit each year and for which the annual out-of-pocket expenses, including deductibles, co-payments, and other amounts, but excluding premiums, does not exceed a certain limit each year (Sec. 223(c)). As with the contribution deduction limitation, these limits are subject to annual inflation adjustments. For 2013, the lower limit on the annual deductible under a high-deductible plan is $1,250 for self-only coverage and $2,500 for family coverage. The upper limit for these out-of-pocket expenses is $6,250 for self-only coverage and $12,500 for family coverage.       

Sally P. Schreiber ( sschreiber@aicpa.org ) is a JofA senior editor.

ADVERTISING SUPPLEMENT

Effortless payroll service offerings

In this special focus report, experts explain how payroll providers can help CPAs help their clients. Sponsored by Paychex, Intuit, SurePayroll, ADP, BenefitMall and AccountantsWorld.

TAX NEWS

Return due dates changed in highway funding bill

The federal highway funding extension bill signed into law on July 31 contains several tax provisions, including changing the due dates for partnership, S corporation, and corporate tax returns.

PROFESSIONAL ISSUES

Belicia Cespedes: A CPA at 17

Through hard work and determination, Belicia Cespedes earned the credential before she was even eligible to vote.